Amazon Gets $275 Price Target, Plans $200B AI Spend and $50B OpenAI Investment
Bank of America reaffirmed its Buy rating on Amazon and raised its price target to $275, implying 30.6% upside, while Citadel boosted its stake by $2.52 billion. Amazon plans $200 billion in 2026 AI infrastructure spending, explores in-house chips and commits $50 billion to OpenAI’s $110 billion funding round.
1. Bank of America Price Target Raise
Bank of America reaffirmed its Buy rating on Amazon and raised its price target to $275, reflecting a 30.6% potential gain. The firm argues that AI infrastructure buildouts signal future revenue opportunities, and Citadel has added $2.52 billion of Amazon shares, taking its total position above $3.2 billion.
2. AWS Capacity and Revenue Outlook
AWS capacity nearly doubled from 8.0 gigawatts in 2022 to almost 15 GW by Q3 2025, with 3.9 GW added last year generating $21.2 billion of incremental sales (about $5.4 billion per GW). Bank of America forecasts capacity reaching 31.4 GW by 2027, driving AWS sales to $163.7 billion in 2026 and $208.8 billion in 2027, above Street estimates.
3. AI Infrastructure and OpenAI Partnership
Amazon plans to invest $200 billion in AI infrastructure and custom silicon in 2026, pushing development of its Trainium and Inferentia chips to lower AI model costs. It has committed $50 billion to a $110 billion OpenAI funding round—deploying $15 billion initially and $35 billion upon milestones—and secured a $100 billion AWS services agreement over eight years.